14-00000

104-10177-10135

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ee a)

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THIS FILE’HAS BEEN PROCESSED AND RETIRED. DO NOT
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TO RID/RPU GE-S8.

NOTICE

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Mm" 2593

17-430

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Rite, G

Air Pouch TCSsel GO)
Chisf, evo \ 29 Decombar 1951
dotings \

Chie? of Station, 3antiago \
YACACTUS, Chile.
Palainatereh's oresForra Couurneab \

Roforencer iCs~-ii-14663 ;
i
1. Attachod horowith please find a-pro forma contract whieh has been prepared
for Fulninater-1's sijnature, ita haw stated that he is in agroemont with ita
provisions. If this ccatract da satisfactory pleaso retura it for lis signature
at gueh tine az his olesrance is obtained.

2. FULSIWATES~2 hag shom himself to be very enthusiastic recerding the proposed
employment with thie Crganisation aud is anxious to start tha tusks to” bo
assigned to hin as aceon ce his clesranco is obtained and the neoursary Inetructiona

are ferwardad to this Ststione .

Se fo carry ext the scvert prepa, ance uspoect of roLag WTI Nels duties he has
highly recormended the use of Victor POELATE Crieza. The latvor fa a Chilean,
about §3 years cf age, who ta foreman af FUININATen-l's prinsing shops be also
livos on the praises and would be ihe caly persoa who would have to kauw if the
Ne da not a member of thu printars!’ laber union and
PVATTLATULe) that he is l0g8 antl-cConmuniste
cfensic and Co., a Sritish firm woich ahered
the print shoo fachlitios with PMLA Duhel'a presses. However, PULUISACEL<“1 a
equipment is entirely separate fron ackonzle's aud if the covert work is dono
at night ag igs anticipated it fa FULYIMaTLkel'’s cpinion that FOBLE rE eould run
off the werk without ary sosuible interference from other individuals. another
of PGBIs Tats advantages ts the fact that he ig able to perform all the printing
oporationg whieh will be nevasuary to put out sormal propaganda and similar
material ani this weuld coliminata the need to use othor pergone in tho
preparation of the prepajanda material,

presses ure used at ni, ite
his peat actions hove indicated to +
Be has been employed meny yeara by &

4. PCSLi-Té hus been closely vensucted with English and Anglo=Chilean officials
of KacKeuaie & Co, for many yoars but it is believed logical to presume that if

he is paid generously for hia werk in this connsetion,with the usderotending

that the work ia of a completely confidential nature and of a long-term baaia, that
he will agree to complete secrevcy regarding the work. Amount of payment to
PC2LETE will have to be detsrmined wnon there is scre indigaticn «a to the mount
of work to be done. 4 local investigation of this person has been initiated and
the results will be forw-rded us soon .3 possible. No derogatory information

on this person spears in this Station's files,

c Ay Ia lina with the authorisation roealved in (Cs8%-1465, FULYTNATFR-1 will be

EAPO

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STOEUTY * rele
Na ADRST EY an TCS-A-1801

AY

paid from other operational funds the peso equivalent of his salary vozinning
l January 1952, It was ccnsatierod necessary to besin his paymenta as of that
dato 4m order to insure his continued satay in Chile. This Station would

‘ Apprectate clarification of JREDICT-Chile to wnich, acsording to TS..-1-1488,
this oxpenaw coul.. be oharged for a linitod time,

(Ji POLMINATER-I's woekly newspaper 16 61% owed by him, and as indiceted in
attached contract, he has acreed to keop tho saper for at least two years.
Tho other owner, tio hag taken no active interest whatsvever in the operation,
management or zolicites of the paper, apparently plana to sell his share.

The prospective buyer ls not known but in any event PULMINATER-1 will retain

the controlling interest.

be Bi FULKINATEK-1 48 willing to spend the necessary tine in Washington for

traicing and will be ready to depart immediately when go advised. However, his
wife fa oxpecting a baby around 30 December 1951 according to her doctor's

a oalculationa, and FPULHINATER-1 would prefer to remain in Santiago for at least

ws a few days after the child ia born. Ho is certain that the birth will take

: place within a waok's time and it is hoped that his pYesence in tiaehington will
not be required prior to 15 January 1952, As a cover story for his trip,
FULYCONATER=2 hag advised that an opticn nag been beuzht on one of hia plays
and that a trip to New York to diseuss the play with the prospeotive producer
is completely logical, Further, he has an eatate in Texas zhioh 1a in litigation
and ahich could logically require his progonce thera. FULMINAZE@@-1 asked that
ho do allowed to szend a day or two in Texas either en hia trip vo or bhaok to
aettle this estate and 1t is recocmonded that he ve allowad te do 30 ia order ta
provide bis cover story with more basis in fast. .

a7, PULYINACER=1 hus been -teld thet he met pay United States ireoma tax on his
ealary received from this Crganization. He is at a loss, however, to know how
this added incone cau be satisfactorily and securely explained to the Deoartment
of Internal Revenue. In accordance with the centen.a of Field Regulations 50-13,
this matter 1a being brought tc Headquertergs attention with a request for
instructions as to how thie matter is to be handled.

Reting Chis? of Station

_ ; Kenneth J, Tondler
efo
mapor SUTERTY USF nuit
~~ a0

Set De

> A¥taohtsnts TCS-A-1501

~ e

t
oe : . _ Pro Forma Contract With Fulminator=1

Wo herebdy aontract you to. perform sorvices aa rejuired under the following
eondi tons: ° 4

1) You agrea to romain in Chile for at lesat two years from tho .
date of this contract and yeu also agreo not to gel) during
thie peried yeur share of the South Pacifio Mail of which, it
ig understood, you are a part owner and maintain the controlling

interest, (513%)

2) [It is agreed by you that this Organisation will not become
involved in any way, finanoially or otherwise, in the South ---—-—-—-

Facific Mail.

3) You will carry out the duties assigned to you by the
appropriate offioial to the best of your ability devoting ~  —_
as much time to them ag is reasonably possible, taking into
ccoagideration your obligation to manage the South Pasifis
Euil us the overt reason for your residence in Chile.

4) You will be paid the sun of U. S. $5,540 per anoum fer your
services to this Organisation, and you agree, in accordanes -
with subsequent ingtructions, to pay the United States Ineome
tax which will ba due on this wmount. Your salary will be paid --

ponthly.

§) You agree tv make yourself availablo te travel to Washington
for about @ ons month's stay to. undergo training aa required.
Travel and living expenses during this trip will be paid by
this Crganizaticn. It ds not knewn when this trip will take
place but it is believed that it will be in the near future.

6) You will be granted paid vacationa during the period of your
‘employment in Chile in accordance with applicable Chiloan
laws.

7} Should local travol be required by thia Organization, your
travel and living expenses while away from Santiago will be
; made available. _ _o. . oe

8) Reasonable entertainment expenses, after prior ccnaultation
‘with this offioe, will be reimbursed,

9) It ds agreed by you that you will not expect sick leave
_ bengfits to acoure to you under the terns of this contract;
and it is understoed that ycur employment by thia Organization
will not entitle you to retirement and other similar bonefits
of United States Governuent employoes.

1

. 10) It is understood by you that the terns of thia oontract are


14-0000

to ‘Attachments TC3-A=1802

ago

- : s
provisional upon the satidfactory clearance of your name by

the appropriate offlotuls.

11) Tho effective dete of this contract ta the date on whieh your
satisfactory cloarance is recotvoda and tha term shall be
indefinite.

12) The termination of this contract may be effected at any tine
uvon written notive, but without advance notice, by this
Organisation, auch termination te be effective uzon receict
of the notice. The termination of this contract will not
release you from any provisions of security oaths which you
may be required to take.

"ea

mo

rr higuadt Cicashaet

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14-0090

SECRET

~~

Project Outline Clearance Sheet

Project Title FOG PB GROVEL. Amendment No. «Project No,

Developed by: _// i ae LAD; BY)
: Date

Case © Organization

es re re ee
‘“
Ww
4
\
tC

. Reviewed by: /“V. * By Spee. AFbIL
eee tf te Division Chi Date
Concurrences: a 4, “ 2 ta {Id a
_— vy’ Date

a Date

Date

Date

Date

Approved subject to conditions below:

Conditions of approval:

—_
cto enn ager SNR SA NSS,

OPC Form No, 1103 (Rev)
23 April 1951 3,42

SECRET

iY

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PRCTEET OUTLTEE

mr tet Project Fageove : Amencment Ne.

red
ERS
een eee,

Type — Coerational

wT 3, aUTHORIZaT«ON

4. Establishment "in the immediate future’ of mechanism capable of
~ conducting psychological and political Verfare aimed at the
. accompLighment of sHD missions (a) amd (b) in Chile; as set out
_ in Section II (paragraph 2.0.) of Annex 8 to the WID/OPC Strategic
Plan dated 1 November 1951, This task is assigned priority one in
Phase I (1 Jan ~ 30 June 52) in the aforementioned Plan.

II, REFERENCES

A. Budgetary data for this Project. (ANNEX A)

B. Field dispatch (1CS-A-1801) outlining the teims of this
Project, (ANNEX B)

_C.. Headquarters cable authorizing recruitment of FULMINATOR-1
for this Project as a contract agent. (ANNEX C)

III. PROPOSaL
A. Statement

It is proposed to undertake the developme:t in Chile of a group
or committee composed of Chilean nationals wnich will engage

_ ‘overtly and actively in anti-Communist work and will function as

oe a WHD mechanism for the accomplishment of WED missions (a) and *C)
in Chile, ag set forth in Paragraph I above.

As the first step in implementing the development of that committee,
it is proposed to engage the services of a high-calibre Anerican
national in Chile as a contract agent at an annual salary of
$6,000.00 to

1. . Spot, recruit, and manage a qualified indigenous Chilean
who will act as organizer. of the aforementioned committee,
and

2. Act as cut-out and principal agent for. 2D, in the
operations or the connittee. coe .

: At such time as developnent of the committee warrants, the

. neceseary steps will be taken to place the comnittea in the
eal proper relationship with the DIHASZAS foundation for purposes
of cover and support.

Backs round

The he ean national in question is.a former WiD/OSO
agent (FULMINATOR-1) of proven ability, courage and
discretion,

FULMINATOR-1's presert occupation in Santiago, Chile,
orovides him wits excellent contacts and cover for
carrying out the tasks proposed for him above. .

He is part owner of, and holds the controlling interest
(513) in a Santiago printing and publishing’ establishment
that publishes an inglish-laiguace newspaper, The South
Pacific Mail, which FULMINATOR-1 edits. His establishment
is well equipred to handle a great variety of printing

- jobs.
Cc. Current Status °
On 23 January 1952, WD Headquarters authorized its
Santiago Field Station to hire FULMINATOR-1 as a
- contract agent for a pericd of at least two years
(See ANNEXES B and D). In his agent capacity, FULMINATOR-1
will undertake to develop the cormittee referred to aoove
in Peragraph A of this Outline.
At such time as that development warrants, an Amendment
to this Project containing a statement of all new require-
ments, will be submitted to competent authority for
aovroval. : :
TV. RECOMMENDATION
That there be allotted to this Project funds in the amount of
{L,709.00 to provide salary for FULNINATOR-1 for the remainder of
Fiscal Year, to cover the cost of bringing him to Washington for
a period of covert training, provide his per dien allowance while
here, and transport hin back to Santiago, Crile following that
training period.
Y. OPERATIONAL DETAILS
A. Area of Operation °
Chile
See! B. Cperational Control

1. WED Headquarters will exercise final coatrol of this
Project, and .ct as its support unit.

} 4.

Bory ute
Enea

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beech tty, be

Begeame
RSH

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' FP

G.

2. The wHY cield Station, Santiago, Chile, will exercise
field icontroh Of Project operations in accordance with

instructions from F eadggar tors.
Personnel Required

One cleared, witting agent to act as Project principal agent
and cutfout (FULEINAOR-1).

Communications Plan

Aveilablé ‘HD pouch and cable facilities : cetween ¢ Headquarters
and the Santiago Mield Station,

Support Plan

i. Training

ra

The Project's principal agent will receive approximately

one menth of covert training in washington, D. ¢., and
return toChile. All expenses in comection with this
raining are to be borne by HD,

Peports Procedure ;
Progress reports will be submitted to VED Headquarters by

the Santiago Field Station in accordame with Headquarters
directives.

Cover and Security
1. Cover

FULMINATOR-1 will remain in Chile in his present business
“position, As a cover story for his trip to Washington for
covert training, FULMINATOR-1 has advised that an option
has been bought on one of his plays and that a trip to
New York to discuss the play with the prospective producer

is completely logical.

2. Se ecurity

On 10 January 1952, HD received an C°>C Cperational Clearance
on FULMINATOW-1.

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Lge Tate a

f -
Communications between FULMINATOH-1 and the Santiago
bheld Statlon wi.l at all times be carried on by means
of a secure cut-out. . :

‘Since FULNIAT0A-1's cover is “his overt business situation
in which he is already established, and since that situation
provides hin with printing and publishing facilities, it is
believed the. good operational security can be maintained
‘with a minimum of efrort in this Project.

VI. BUDGET DATA

See ANNEX A. (OPC Form No. hOk).

——


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sLagcnmend
2.

_- SECRET _

wee ROUTING AND RECORD SHEET

IWSTRUCTIONS: Offtour designations should bo used in the "TO" column Uncar each commont aging should bo drawn across sheet
apd each comment rumbe-ed to corresperif with the number in the "TO" column. Each officer she tid nital (chock mark insufl.ccent)
before furthor routeg Ths Routrg and Record Sheet should be retuned to Registry. .

rent ttc ate
¢
:
.

. a
FROM: *
y
COMMENTS i : .
thee 4bxa .
attaches ofl .
: r
6 -
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AO-VLSS-P . & CouRASAKaT parties oFFics

FORM NO, 51-10 SECRET

FEB 1950


14-00000 . . hoe

co SECRET mT ao

a Serva INFGRMATION .

., . 4, February 1952 .

MEMORANDUL FOR: HD
SUBJECT: OPC Froject PBGROVEL

1. Subject projéct has been reviewed by this office and - {
no communications facilities beyond those already existing will

be required in support of the project.
2. It is intended that this memorandum shall constitute

JAAS Le FIGHER

the Communications Annex for PBGXOVEL.

00/0?/Cormn0
. on/or/ILP/mh J
: Distribution: Co

Addressee - orig & 3
on/or/Carpenter - 1 .
op/CP/Fisher - 2 ; t
SD/RE - 2 :

STCURIT? INFGRMATION

SEGRET


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‘ead

SECRET

Oraneh i, VED Teeerds
GECANDOM 2Qh THE Teedma

Meeting with Agent, Pow? D, Lovin on 29 -Arril 1982

far

1, The sense of the following tuxt vas obtained &ring
en afternoon mecting with Ascent LAUGSVIN. Particinating in

the tell vere Messrs, Sryser and Tatton and Agent TARCSeTE.
Fow rajor tonics were discussed and will be presented bere

in the order in whieh they vere developed,

2. Printin: Plant Troblem: Mr. LANGEVIN indicated that

in tvo and a half to “ree months certain financial obligs-
tions woule core due. These consicted entirely in making an
€S,00C payment arising fron the purchase of equipment for his
printing establisiment, This ecuipment, uhich cost about
$10,000 when purchased late in 1951, consists of an Itelisn-
made press, linotyre machine, Speed Graphic enmeras, tyre,
ete, The marlet value of this equipment (per tly new and
partly used) is estimated to be at least $10,000. The sun <
23,000 represents the totel indebtedress of ian ‘GEVIE's
and is owed to a Mr, FMACHENZTE of Casa Fackonzic, Ta, LALGSVID
ray meet this payment by either (1) securing: a loan from a Fort
Worth, Texas, bank using his share in family ol] interests as
collateral, (2) taking on a Chilean pertner, (3) getting the
oney from a Chilean bank (which vould involve an 16% interest
rate) or (4) getting the money elsewhere, Common agreement was
expressed on the undesirability of taking on a Chilean partrer
since this would be a security hazard in uny future Fi work,
end vould alse eliminate the poset ty of using the plent as
cover for another agent, iy, LANGEVGl, asked about his mrevious
Statement about leaving Chile after two yore yoplied ths now
there wes no definite plen or desire dn that direction, Fe
indicated he vould have some ideasbout the ressibility of
assistance from a Texas bark within a few weoks., Mr. LANCSYIN
also suggested that he would gladly use his earn vines for tha
next two years from the-agency (26,000 per yer} 4f the Ageacy
could mit up the $6,000 in a lump sum, The printing firm is
now meking a profit above the salary which LANGEVIN takes out.

3. PBrietirg on the Comittee: Mr. SIYSER discussed the
everell tasks which LANGEYIT is oxpected to perform. Muck
euphasis was placed on the need for security in explaining
this tyre of IW ectivity, particulerly if and when DTHABELS is

SECRET

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»

oy

SECRET

~2—

brought in, Tr, LANGEVIN indiected thet kis cover for con=
tecting the Exbassy vas good, end further inciected that no
uncuthorised person in Chile Imew of his U. S. Governnent
activities,

4. Information on FUELER: When questioned about the
discretion of FUMELIR, LAUGEVII indicated complete confidence,
stating that she was very efficient and vould be usofl in
essisting him in Pl work. LANGAVIN vas thorouchly briefed on
the fact. that FUELER must never Imow of DITADEAS or its con-
nection vith the committee.

5. “Words. and Deeds: Mr, LANGEVIN stated that the format,
paper, type and photoengraving of this pamphlet was far above

~ Chilean standards, He seid that Clile had only one printing

house capable of producing: such works and no articts of the
caliber exhibited in the pamphlet. He suggested a Spanish or
French attribution on peorer paper, The reproduction of nosi-~
tives is also not done in his plant, mt rust be ecntracted for
at a Sentiago photoengraver's.

6. Bank Details: Mr, LATGSVIN has cnened an account at
the Chezicel Rank end Trust,. 74th Strcet cnd Madison Avenue,
New York City, All -tuture monthly peyments i411 be rade to
that bank, beginning with the payment for April.

Leo E, Patten

SECRET


14-0000

aye

MAY ie

Sat

SECRi-

crm Ce CAPLE Z

TOs SAVTIAGG ROUTINES
FRCL: OFERATICIS. 16 MAY 52
OUT 77204

WASH 41154

TOs SAGOG CITE: WASHG
2. INFORM LANGEVIT EEADQUARTERS ATTEMPTIiG OSTAIN LOAN.

2. REQUEST LANGEVIN NOTIFY iEADQUARTERS BEFME CCMPIETING
AY LOAN ARPANGEMENTS. .

SECRET


14-0000

ge : SECRET ne
"ROUTING AND RECORD SHEET

INSTRUCTIONS: Officer designations should be used in the "TO" column. Under each camment a fine should be drawn across sheet
and each comment numbered to correspond with the number in the "TO" column, Each officer should snitial (check mark insufficient)
before further routing. This Routing and Record Sheat should be returned to Registry.

1 te nee

AS—CL36-1o, & ooTaetat Potetie nce

FORM No. s1-t0 ; SECRET r FE7
. f- &4

14-00000

28 May 1952

v

MEMORANDUM FOR: 0D/CO
STTENTICN: | Mr, William Rowland
SUBJECT: Project PBGROVEL, Amendment No. 1

i , 1. Forwarded herewith are the criginal and two copies of subject
so anendment plus an extra copy of OPC Form LOoka,

-  . 2. It is respectfully requested that approval of subject amend-

“ment be expedited as the Project Financial Data, Form lola, indicates

‘ that’ payment of eight thousand (88,000. 00) dollars to PAUL D. LANGEVIN a
must be made on or about 20 June 1952.

Free ctemeee Te

3. Subparagraph six of the Proposal indicates that as a prerequi-~
‘site to issuance of a loan to LANCEVIN the latter will be required to
submit a complete nameplate inventory of all.machinery and equipment in-
volved in the loan transaction,“its physical existence in his custody,
his title to the pr-perty, and-an a-oroximate evaluation of its worth
(as. determined by WED station personnel}, WHD will be prepared to do
this shortly after Amendment No. 1 is approved and the necessary funds

are available for payment.
x

, lk. Subparagraph five of the Proposal indicates that details of the
. loan contract and selection of the appropriate legal instrument to secure
a lien on the machinery and equipment will be arrived at through joint
"agreement of WHD, CCC and the Legal Division. These financial details
will be arranged subsecuent to approval of the amendment in question and
will comprise the financial plan governing the expenditure of the funds

requested.
sa -. .'C, KING
: 7 WH
ICK/SwW/VLG/EB/4e
Distribution

“Orig: oD/Coy
‘ ce: Special Contracting Officer (Mr. J.L. Bischoff)
CM (Mr. Ernest W. Pittman)
Chief, Branch IT
Project File PRCROVEL WHD/F&O
Chrono WHD/P&O

1400000,

25 Juno 1952

: MEMORANDUM FOR: ASSISTANT DIRECTOR FOR POLICY COORDINATION .
: SUBJECT: Project PEOROVEL, Proprietary, WHD

: ; - ' 2, CM-concurs in making a loan of U. S, $6,000 with interest
; a at 4 percent per annum to contract agent Paul D. Langevin (pseudo).

. . This Ioan is to be fully secured by a chattel mortgage, or whatever

other legal instrunent is recognized by the appropriate Chilean .

Court as establishing a first lien on the machinery and equipment, . - Oo

valued at approximately U. S. $10,000, against which the loan is be-- ‘ .

ing made. Principal tand-interest are to be amortized in monthly

installments of U.S. $500, which represents the totel salary

accruing each month to the agent. The term of the loan will be for

the time required te liquidate principal and interest in full,

2. The contract agent will submit a complete name-~plate

inventory of all machinery and equipment involved as collateral for
the loan along with his proof of title to and its physical existence i

in his possession,
ALO Oo.
PRESTON L, SUTPHEN 7

Chief, Comercial Division

CM/RDOD/rs

Distribution:
orig & 2 - Addressee
. 1 - DDA
{ 1 - WHD
: 3-H
+ 2 ~ BI/FI

SEGRET


14-00000

. SECRET eee
ROUTING AND RECORD SHEET

. . INSTRUCTIONS: Officer designations should be used in the “TO column, Under each comment a ino should of drawn acrogs shest
and each comment numbered to cciespand with the number in the "TO" column. Each officer should initia (check mark insufficiont)

before further routing This Routing ani Recard Sheet should be returned to Roustry,

OFFICER'S
INITIALS

33-5 u. Bh GOVERRACRT PEST Na OFFER

FORM NO. 51-10 : ‘SECRET i

FEB 1950 +


14-00000

eal

"Bee

veer ts 6 Keys

. oa
van

sir ¢

Office Memorandum + “UNITED STATES GOV2xNMENT

DATE: 7 day 1962

Rec

TO, + ADPC) .
VIA: «oD/co :
FROM =: CAWH

SUBJECT: Information on, Paul D. LANGEVIN principal agent of Project PBORCVEL

1. Paul D. LANGEVIN is the principal agent of subject project, approved
12 February 1952, Project PBGROVEL contemplates the establishment in Santiago of
an indigenous anti-comunist committee which, when developed, will be-placed
under DTHAEEAS,

2. Subject agent was granted an OSO clearance 3 October 1950, and
proved his usefulness as a cut-out and in a DYCLAVIER printing operation. Subject
was granted an operational clearance for DYCLAVIER work 1h January 1952, and
received covert training in New York City in April. Since his retum to
Saritiago, subject has engared in spotting and recruiting an indigenous principal
agent who will in turn organize the anti-communist committee,

. 3. “Subject is tho Texas-born 30 year old, owner and publisher of the. —~
‘English-language weekly “South Pacific Mail" of Santiago. Subiect has also had
acting and writing experience since his completion of wartime service in the

U, S. Air Force. Subjact has been in Chile since November 199 and at present
has a two year contract as agent for this agency, signed 25 January 1952. Subject
has indicated on several occasions a continuing interest in obtaining a pernanent

position with this agency.

4. Due to the Subject's travel to New York for training, several
officers of WHD have had an opportunity to observe and evaluate subject. Opinion
on subject has been consistently favorable and he has impressed all as a person
of high intelligence and personal integrity. Subject has had a varied occupational
background, excellent education, and exhibits exceptional pcise and a good

appearance,

leaaa
. Co . J. Cx KING

FY
a

ROUTING AND.RECORD SH

_ INSTRUCTIONS: . Officer desig’ a should 08 used in the "TO" columa. Ue 1 : pa should be drawn across sheet
| andeach comment -aumber srend with the number in the 3 8g d initial (check mark insufficient)
before furthe? routing. This nd -Recard Sheet should b@ réturees co Reg : _

4


14-0000

ny,

“

he

ot

are
oe
ernst

any

tty
2

REMORAMDIEE FCRa GEPUCY DIRECTOR (PLANS)
SUAIECT 1 Project PEGROVEL, Ansrutrent No, 1._.... pot

1, Ansminent Mo, 1 to Project PECROVEL proposes the loan
of the am of $5,000 ob 4% interest par anmm to a contract agent

in Sentlago, Chile, in order that this agent mxy complete paynont

en machinery and equipnent recently installed on the prentoas of
the printing establishrent of which esta agent is sole proprietor,

2. The propriety. ‘of CIA lending funda-for this. purpose has
doen reviewed by Ovc/NE who 4a af the opinion that- in. principle
there should be no of jection, Tho question of oneratioral.aca by
Ope han boen raised with the WH Division and it hag been stated —
that thig equiprent, consisting of tho press, Linctype machine,
Speed Graphic. emeras, etc,, can bs usad for Opa Foopagrasia prue
cuetion purposes.

3. The quoction of control of the contract ageat waa dine
quesed myi 1t has been deterninnd that the Coriem] Camerlts Of
fies ia being roquested to estas Slish logel moers wherevy tho Lien
or nortgace on this equiprent wi3l be hold in the ness of a cute
out, In ths event of amy wuitoward action on tho part af the gan-

' tragt eer. or disagreement botwaen tho agont and CIA, action ean

be taken to asame control of tho machinery.
4, Ae is indisated in the atteched aumoromiun froa the Chief,

H Division, the contract -acont is considered to be an individual

of hiph intelligence ant personel intesrity, For thia and the
shove listed reasons, it is recomended thet Aneninont Mo. 1 to
PECROVEL be appeoved in the amomt of 35,000,

~ a

Lo. FRANKLIN A. LIDSAY _ 0 eee
co Acting Assistant Direster for
Policy Coarnlination

ore /@ 0/rva faty
Distribution:
Projest Foudsr oi

@0 -
rapa 2


14400000

SECRET
wo, ROUTING AND RECORD SHEET oo.

rary
INSTRUCTIONS: Ofticer designatians shauid be used in the "TO" column, Under each comment a line should be drawn across sheet
ang each comment nunbered to corres: snd with the number in the "TO" column. Eacu officer should initial (check mark insufficient)

before further routing. This Routing ti Record Sheet should be returned ta Rewistry.

NOL

, FROM:
ER. 3-094)

oO fC . cy DATE
Pre onricen's |

HNETIALS

SOULE LU. 5. GOVERNK ENT ParKtena OF ME

FORM NO. 51-10 SECRET

FEB 1950


dena etter nn

= . 3 - een
. ih. pe 1682, Lo,

\
MEMORANDUM FORs DEPUTY DIRECTOR (PLAIIS)

SUBJECT: _ Project PBGROVEL, Amendment No. 1

1. Amendment No. 1 to Project PBGROVEL proposas the loan
of the sun of $3,000 at 4% interest per annum to a contract agent
in Santiago, Chile, in-order that’ this agent may complete payment
on machinery and equipment recontly installed on the promises of
the printing establishnent of which said agent is sole proprietore -
_., @e The propriety of CIA lending funds for this purpose has
been reviewed by Opo/SRI who is of the opinion that in principle

“there should be no objection, Tho question of operational use by

Opo has been raised with the WH Division and it hes bowen stated
that this oquipment, consisting of the press, linotype machine,
Speed Graphic cameras, etoe, can be used for Ope propaganda pro~
duction purposes. \

3. Tho question of control of the contract agent was dis-
oussed and it has been determined that the General Counsel's Of~
fice ia being requested to establish legal means whereby the li¢n
or mortgazs on this equipment will be held in the name of a eut-
out. In the event of any-untoward action on the part of the con-
tract agent or disagreement between thé agent and CIA, action can
be taken to assumo control of the machinery.

4. As is indicated in the attached memorandum from the Chief,
WH Division, the contract agent is considered to be an individual
of high intelligence and personal integrity. For this and the
abova listed reasons, it is recommended that Amendment No. 1 to
PBGROVEL be approved in the amount of $8,000.

Laan Mocks

KL « LI

Acting/Assistant Director f
Policy Coordination


: SECRET an

al ei er ———
+ .&
\

oe ROUTING AND RECORD SHEET a

INSTASCTIONS: Officor des gnatwas s‘uld be used in the "TO" column. Under each comment a line should be drawa across sheet
eT cols Each officer shoud i tial (check mark insufficient)

and each comment numbere J ts correspond with the aumbes

before further routeg Ths Routag and Necord Sheet sheu'd de roturned to Registry.

TEGAN} GS. GOVERNED YT Paiwttag ornce

i FORM NO. 51-10 SECRET

; FES 155)


Sea ty ete

14-0000

ae “ EA WAL? - =
- e

\ ee ape tee - | |
SECRET Lok
Security Inferrapiion
13 ddy 1952
MEMORAENM FORa Secretary, Project Review Comittee =
SUSILCT 1 Froject POGRUVEL, Anendnont Uo. 2

pastes

le This wild advise you that bo/r approved the above today in
the area att of $3,000. . :
2. This sun is actually a lom to a princtoal agent at k% interest

ner anni, renayuuant to bo effectuated in 2500 monthly instalisents out
of the contract asent!s galary with the agency, which axomts to $6,000

por anmune ‘

3. The agent 4g: lecated in Santiago, Chile. Prover arringenents
in connection with the above will be made by CCC and the Gancral Counsel's
This uatter wag cleared with the latter priae to epproval.

‘of Mca.
WANS VY, @OFTE
| Beting Chief of Plans '
flies cf LD/P
INTich
UW dely 1952
et Digss
Original & 5s Secretary, PRC
lec: Project Felder, 0D/Co “
leet Mise, Projects Yoldor, DL/P
Loos ER
les: DL/P Chrono .
.2 cos oOrc/at . oo, Lo. -
SECRET

ferwity tr bormation


14-0000

6)

S-E-C-R-E-T
SECURITY INFORMATION

oD/P Projeot Aporeval Sheot

Project Cryptonym PROROVEL | Amendment Noe 1
aden heal eRe

Sub-Projeot Cryptonym

Originating Division WESTERN WEMNISPHEERE DIVISION

Approved -- Disapproved

Comments:

a rn ott

en eee nner nant are avarenrensnnane

ie

ere err rermertenreerenrerie atthe ES SS
. Pe ne -

ee

S-E~C-R-E-T


14-0000

wet Pad et

“

S-Ea0-R=E=T
t

: gn . “SECURITY INFORMATION
‘ ¥

4 : , Froject 6utline Clearince Sheet

ee

\ Project Title | PRCT Anendnent No. 1 ‘Project No.
Developed by: Lee g. Ebon WHO / OPC &el 23 Pas 1752

Case: Officer

Organization Date

f
. to. . . . . .
5 Reviewed by: Vf) i eye ( LE brag 19S a.
i os . : 1 Span sf ‘Dale sion Ch Date ‘
\ ‘ !
\ Coneurrences: f/ss;pwadeen th NC WIP +h Meag f9oe
: : e . Date
, . : ‘ Date
.
, : . . Date
Date
Date

Aprroved subject to conditions below:

Conditions of approvals:

OPC Form No. 1103 (Rev.)
23 April. 1951

: S-E~CaR-B-T

14-0000

ye

t oe ee)

’ Consurred: Psychological Warfare Officer WED

on .
SekC-ReEsT
Security infotmition

Project Title Amendment No. Project No.

‘fal Following Line and Staff Cificers of the Western Hemisphere Division Hive
Signed and Concurr With This Project.

Data
Political Warfare Officer WHD_.._
Date
Feonomic Warfare Officer WHD —— :
ne Date
Sabotage Warfare Officer WD _ < -
- . ‘ Date .
Countersabotage Officer WHD : a
Date
Paramilitary Officer WED
Da
Plans Officer P* 0 WD .
Date
Budget Officer P * 0 WHD AP AAS CPF 2.
. ate

CO

Fe Me [fo
FEL el [fs 2.

Project Coordinator

Chief P & O WHD

Conditions of fonroval

ier ne en RN
SoEsCoRsleoT
Security Information

ERO eEarnacnemas ocimeeaomec ecm eremtee———— —

14-0000

ae Ty, AUPNCRIGATICH
__...._ Same as Project FRICVEL.
Il, PEFSCENCES

A, Sore as Project FSGRCVEL.

B. Budgetary dats for this arendzent (annex A).

CG. Memo on meeting with Agent Paul D, LANGEVIN! (Annex B).

ot eeees 1

__ BD. Cable to Senticgo Station on the loan to LAUGSTEN (Annex C),
TIT, PROPOSAL ,
A, Statement

1, It is proposed that the Agency lend the am of $8,000 in

‘ U.S. eurreney, at 20 per annum, to contrect agent, Paul

: D, LANGSVIE, Im Santieso, Chile, in order that this azeut

--ray meet corntractunl obligations without endansering his
present cover.

2, Tho proceeds of this loan would be used to complete ray~
ment on rectinery and equinment recently installed in the
leased prezises of the printing establishment of which
LANGEVIN is row sole prerrieter.

3, The princiral end interest of the loan would.de amortized
from the entire proceeds of LANGEVIN's sslezy from the
agoncy of $6,0CC per year, at the rate of $5°O ver month,

4. The loan would be guaranteed by o chattel mortgage, or
whatever lege] instrument is custorarily exmored in

: Chile to establish a lien on the assets ageinst which the

: __. lean would be msde, ; ek

5, Details of the loan contract and selection of an apnro-
priate legal instrument to secure a lien on the machinery
and equipment would be arrived et through joint agreement
of VED, CCC and the Legel Division. The ex‘sting agent

ed

SECRET


14-0000

sw

wae

B,

Cc,

SECRET

Pome

contract with LANGEVIN vould siso be revieved Jointly by
rejrecentatives ef these divisions vith a view to incore
porzting any modifiestion wiieh might be necessary as a

result of the agent's entcring inte a loun agreenmcnt with

the ccency,

6, As a prerequisite to the iscuence of a loan, LANGEVIN
ould recuired to subrit a complete nare~plate inven-
tory of'all machinery and covinmont involved in the loan
tranecetion and its physical existence in hic custody,
his title to the property, cnd an approximate evauletion .
of its worth would bo determined through VED station per=

sonnel.
Background
Contract agent, Peul D. LAKGEVIN, is the sole ovmer and editor
of the. English-lencuact poner, South Peeifie Mail, which is
published uveekly in Santiago, Chile, The prirtin, ting of this
publication ves formerly done by an outside firm. Pesiring to
handle both his own printing reculrenents end to engage in job
printing, LANGEVII! obtained equipment from an individual vho
expected to ke compensated through a nertnership in the busi-
ness, However, sertous jllness hes prevented the rpresrective
rartrer from entering the business, ond hes forced LANGEVI! to
rect the financial obligation clone. The repayment of this
obligation will recuire LANGEVIN either (1) to aecevt a Chilean
pertrer in his business, or (2) to cbtain a lean, The require-
nents of ceevrity and the need for flexibility of omration
militate against bringing in e partner. Moreover, a loan ob-
teined locally through ordinary cormercicl]l channels, i.e.
banks, would enteil exorbitant interest retes, In addition,
since a bank ldan would clmost corteinly: be of short-term
duration, there vould exist the constant threat of loss of the
cover business through a ‘possible vefusal to renew the loan.

LANGEVIN has ecntacted a bank: in Tess in an attempt to secure
a loan, offering as semrity his chare of a fambly interest in

-oil-producing lenéc., It cpnesrs doubtful that the Texas bank

will grant the loan,

Current Status ,

LANGEVIN was advi ned, vidle in the United Stetes for training,
that Headcquerters voul¢é investigate the pocsibilities of an

SECRET

14-0000

we aye

vette aes

tee

Hy ree

». OPERATION

Ath the Correr~
! cable, otter
ile, not te cer asy loan errencenents with
dquarters (Seo annex.3). Tt vas deeddod that
en Zrem tho Agener, under the, terms cutlined in the propose
nted the best solution for the are ney from the standpoint
of security, and that such a loan vould give the Agency even
Grecter eontrol over the agent than now exists,

Agere loan (See Annex 4),
fs3 and Lerel Diviclons,

“We retitn te Ch

It is recomended that tte sun of &€ 2000 | be mice availeble es a loan,

-at 2% interest, to contrect egent, ae
soeurec iY & tien on techinesy tnd equinnend veluce. at. -oprroxirately
. $210,000; interest and princinal to be anortis ed at une rate of $500
“per month, the full amount of agent's salary.

i TANGEVIE, the loan to bo »

Same as Trotect POORCVEL. -
BUDGET PATA

Seo Amex A. (CFO FORE No. 204a) -

SECRET

14-00000

Se SECRET

PROJECT FINANCIAL DATA

(This data may not exceed SECRET classification)
,

Fiscal Period Covered 1 June 195 2

Project Cryptonym P3320 iL Vis
through 306 June 195 2

‘

L. S, Patton wED/CPG  Srsnch 1 ‘Pos,
Case Officer Responsioble Staft or Division

A, PERSONNEL REQUIREMENTS

, (Indicate number and type of persennel required and estimated total

compensaiion for salary, allowances, travel, and related employee

benefits, )
‘Type Number——~~—-- Estimated Total Compensation
Staff Employees OO
Staff Agents

Career Agents we: .

Agents es None
Consultants

Detailed Personnel

Miscellaneous

TOTAL $

ean ne +

SUPPLIES, MATERIALS, EQUIPMENT, AND SPECIAL SERVICES

Cndicate the type and esti:aated cost of materials and special services
required to support the project, Attach a list of special equipment
requirements, if avaiiable, )

None

4 : Total Estimated Cost $ °

C, OTHER OPERATIONAL EXPENSES

7 XPENSES .
. Undicate volume ana niture of such expenses, suchas (1) maintenance

of two operational heuses abroad, (2) hire of approximately 10 foreign
77> -~""" nationals for procureriént of information, (3) spot purchase of

information, etc.)
None

Total Estimated Cost $

OPC Form No, 44a
9 November 1950 SECRET

14-0000

SECRET

D, SURSIDY OP PROPRIET. ARY PAYMENTS
Cf funds are to b. tureed over to sndivicduals or groups in large lurnp
sums to be expended by the individusls or groups at thetr diséretion
3 to accomplish an agreed-upon objective, explain the type of financial

accounts, factual.verifieation, or afatements, ifaay, other than a
reccipt for the lump sum, which will hc obtained from such individual
or greup, )

. ‘The sum of {3,000.00 is to be paid to cgntract agent Paul D. LANGEVIN

! in the form of a loan at 4% interest, both interest and principal to

’ be anfortized at the rate of §500.00 per month. Tho loan will be

avidenced by a loan contract signed by LiNGZVIN and the agency.

Total Estimated Cost $ 8,000.00
\
E, FUNDING REQUIREMENTS f
(Show approximate dates funds will be required, if known, and indicate
whether funds will be required in U, S, dollars, specific types of for-
eign currency, checks, bonds, geld, or some special type of nego-
tiable instrument, Indicate any special security requirements or
special methods of transmission anticipated in connection with funding
the activity. )

The above amount (USi8,000.00) shalt be paid in a lump sum to the
borrower, preferably by check deposited in the Chemical ELank and Trust,
74th Street ard Madison Avenue, New York, N.Y., on or about 20 June 1952,

‘
‘

F, SPECIAL REQUIREMENTS
(Within security limitations, list any other facts or circumstances
which will enable Special Support Staff to lend adequate logistic sup-
port to this project, Indicate specifically the "Rush" or "Time"
factors involved, } .

Full amount nust be paid on or about 20 June 1952

G. Funds required for use in Field $ 8,000.00
: Funds required for use by Hq.
Totsl (this amount is also tetal of
A, B, C, and D above)

Ww
.

g 8,000.00

OPC Form No, 404a -2-
9 November 1950

ted


14.90000

fo "SECRET

4 ve e
- PROJECT FINANCIAL DATA
(This data may aot exceed SECRET classificction)
oy 2 are
r Project Cryptonyn Fiscal Period Covered Pa 195
throage 3 cha Tone args

\ ‘
’

tgbten Nf pes
eats Officer Responsible Staff or Division

, A, ‘PERSONNEL REQUIREMENTS ;
(indicate number and type of personnc! required and estimated total
compensation for salary, allowances, travel, and related employee

benefits, ) .
Type Number Estimated Total Compensation .
' Staff Employees me

‘ Staff Agents

i ; Career Agents

: Agents
Consultants .
¥ -Detaiied Personnel - - we . . .
Miscellaneous : . a

: TOTAL $

B, SUPPLIES, MATERIALS, EQUIPMENT, AND SPECIAL SERVICES
a Cndicate the type and esti:nated cost of materials and special seivices
ad required to support the project, Attach a list of special equipment
requirements, if available, ) ~. ;

ane i

Total Estimated Cost $

i
4
a

j

!

CC. OTHER OPERATIONAL EXPENSES
(indicate volume and nature of suca expenses, such as (1) maintenance
of two opcraticnal houses abroad, (2) hire of approximately 10 forcign
mitionals for procurement of information, (3) spot purchase of
information, etc.) .
_ Rona

kn d Total Estimated Cost $

OPC Form No, 404a
9 November 1950 SECRET


14-0000

Hmeee ete! pee +

Pete be SPE ecO ee ES tre,

&

3

" D, SUBSIDY OP PRO?

CCRET ‘

ra

METARY PAYMENTS -

(ttunds are to be tiered aver to individuals cr groups in large “‘himp
-sums to be expended by the individuals gr groups at their diserction —
to accorplish an agrcedsupon objective, explain the type of financial
gecounts, factual verificztion, or atate*nants, ifany, other than a
receipt for the lump sum, which will be obtained from such individual
or group, )

‘

iy sve of 2B giKM Be fo ta gad? te wont eh aga ia oe BOF
is the Pown a. @ Bean a bE Lateretty bots talerest and sri spat: at t
BO Sec PLLGH BS AG BNE OL SNe per combos “The lam. wh 5

avicenast by uv Lesa andesa@t staget ty kos and the apareye.
Total Estimated Cost $ «# OO.)

_E, FUNDING REQUIREMENTS
(Show Approximate dates funds will be required, if known, and indicate
whether funds will be required in U. S, dollars, specific types offor- - >
eign currency, checks, bonds, gold, or some special type of nego- .
tizble instrument. Indicate any special security requirements or
special methods of transmission anticipated in connection with funding
the activity. ) Cs -

Ta atoce cmeoth Os a D003} ORAL bn, ay yo Suet remot tte
witrucer, oratarati~ Me chen decesttad ia the vherlosl feck ant 7 ruth g
Fits cApeet and Kathe sya, 9m vere, Noles Bt OF Ebeue ME Cone Were

F, SPECIAL REQUIREMENTS
| (Within security limitations, list any other facts or circumstances
which will enable Special Support Staff to lend adequate iogistic sup-
port to this project, Indicate specifically the "Rusk" or "'Time't
factors involved, )

YoLh avanah onet tre walt ae oe asomt 20 dua 2952
1

G. Funds yequired for use in Field $ BUD
Funds required for use by Hq. S$.

' otel (this amount is also tetal of ———

A, B, C, and D above) $ By KO

OPC Form No, 404a ~2-
9 November ; 1950

‘ SECRET


14-0000

~
t

doe tte acme oe ne enna apne aw Menage ca a nuepwermenenee A ea

er

won

ee,

bee eM nee

pene mR Vm tore camer es

marca 5, 1098

rgtdans as)
Boor Sirsa \

Balas a reecsS vioit to tho Calted Statoe, 3 tad tho eppar-
tuphty of speamin, sith o , cotlensa che gro so the eeee of year
organisation as cae chich, in cortain eases, was oble te esspurate:
mth interpatiens| astetotaliteriag groupde

_ In Sen tls co, orwre ome oaloto, thre ta a asall baad of
_p@eple who are enthuslsetioally interestsd is launshing auch a.
grou-, alth prticuiar lotereot in tho rorival of "Per Gaile", a
voekly newmsg+sino ones printed here. -Thie puplication waa doo
vuted to tne lower alagpea end od terially fought agains’ Gomonnias.
A Berge grou, of loval Jusinviopen contributed to ite euseoss mith
thotr baacla and ous “rt, @ soup «bia8 could be celled upea agains

Tho direstor of tae jupliestica,. +8 digo
tla juisned journaliot, is evallavls to carry au “gaaa ead azedts, by
uafortuystely duss a t hav@ the acgcasary Mnranoiol baokia,. Bould
it 30 teo auoh ty hue thet your orspnisatd m aigh3 bolp in tats
gsttor? A sum of avoat J40,00u Jollara aysar would bo required to

neure aucoess, P:.ia aint raghly poprosate ths yoarly losa of
tha prev ous 9 oltaation, plue d certals omsideration (ar Anagoaged
duate, All otter melo ex cases would, of course, oo act frou adverse
tlolng ans otroulatiana revenuass

myself, aad other fataposted friends aro wregering .
a doteiled Fepezt on ‘he enpoasoa a@atiesed abeve, irdicoatéia, bow
Guen uonoy would be weed, end with what cxysated rowlic, Es could
ba happy to acna this roport ta you 1¢ you indtosts ony poesiblo
Bappore of cur idea,

- ji
Ploase far,ive tho tagecassa of Sada FoE@st, sd os TO ere acd : j
euro fo was extent your oeapanation fa peesdble, wo avals further NM 18
4
‘ io
l
Siesarely youre, ;
(FUE BPIAL)
a
/
on Sy
ares i et ae gt et ctactnetincee nee ae ne


14-0000

cman ene anmenn cme faim bee Em mma reemaateaes meee eg meee we eee TY

April 0, 1405

boourprag
Dear Sirs

Thia is to aoknvel edyq altn theaks revaips of your lotter of
saroh 5, 1¥63. Tho cxesutive board of cur foundativa has reed and
vons.dered your proposal aad we Clad your cont enple tod activities
moot {nterestta,. Yow Lisa of reviviag am amtletetalisaricn nevoe
t>,oasing coma a hicshly desirable eotivity otha wrich to initiate
your growp's aativitios., Our foundation, as yeu rave been told, fo-
wore than villia, to assist acopeditsd groupe such as yours ig dorele
oping end carrying forward a géemuim osticetwtalitarlan prograae

Grilo-ao aro acat Latcresated iu seela, your group ausecoefully
Yeunchod tne Poaeation'e su prt of Ite activitio. would of cource
be vontia.cat u,oa Poel pt of as completo details as pesaible on the
porovanel, roscmoes, emiaias uf your ,rous and the board'a | BPRFe~
val of tne aroup! a objeutives end rogren.

m In weidor. tia’ the bead nay “arrive at definite conslusiuas cone
Ceriing aay sssistenso o oh 16 nh bt be able ‘to wevids, we roquest
tnt you furnish tne Solloy.a, in. ommations

a. Subsit a reo-rt, as you sugceot, sottin, forth your
phone .or revival f the aa aakao and ino.ude i:fursotion
MM sO.r rsa sirces aud the a.ount of aasistence waloh you
woulu eid. tie Foundation ty ‘eupply. .

be Tnfon. us ea ty onethor your group is, wr sould bo,
in @ ,ou'tiua to forw.tate 6 prugras of additional anti-
Caau.l t aotivition, #3 wwls like ali ogslole Iafor=
satin laviuding on oatinate of robable 008.

eo. Siaco your group ia very evidently oouposed of ine
-laential and Algh-ainded people sueh .9 ourself, wo
believe tnet Lt ight have tho eapavilit, of eveztual ly
dov losin, inte en organiseticn abich oould well toomea
the focal point vor anti-Communist aotivitios throughout
Chile aad aight be the vehiele through whieh aid sould bo
ohennelles to other wortay olvie, coelal, business oF reo
ligious orgenisativne which ales may ba aware of tao Comme
uniet mensce and vifob say cioh to acabat 1% aotivoly.
Your views oenserning eugn © possibility oo -4d bo golemoed
by us.

a. Ya order to further the cork of your group, will 1%
de possible toctain fmnoi l aa isteace locally frea

businosa, evolal aad civic organisaSiona? Sueh ouppors
fo obtelasd in say inatancos, 'u other ocuntrics, by
ro utacle organizat ons exyoged An offerte alallar to
thues which you nave oabarted u pen.

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ensver eich will rom it, ;Porpt conalderat ima of poasible support
for tals emisavar. .

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ne! . Thai you for your letter of April Sta, 1833. I ep owro you vill,
i . understend -b.ct the ‘éslay tn enowaring has becom duo to ay offerts to
48 tne inforaaticn needed fer & detal lod Reopansa te yur’ quoetians.
{ havo sd several eonveryéations with dex: , So editor .
of the ‘puul footios Be wisn te revive, ae wall aa other, interested partios,

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air t. the vorth “Caterers ead 00200F arses) and by rallito tho Bouth
(ooal sinin an. tozrtile Pootyries). Thue tho review woul: ts cold ae
morcere Lott thetF faoturles.:f or :
Suey c@miin’ ide tre fae lye Our. adjooitve fe to poash a playses and
. “Sn aevere | ourior to fore 4 naoe o-meaivaog. Beay industriel eenorna
i ‘woods purotase the vastioat un Mrracalo to eavlayees at a lower cost, .
t : An oan oles) jurin. toe ror. sua mbiicativn period tio Cervenifers Lota
i (Lote Goel whi, Sea @: ay) vegan with @ supserivtion uf 40 copipa. Thas
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: - - ohse. It cali -be “wiuted on. Tur aday a ftornoga and bo: dt opatehed: oy
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Raver, do tO,..0te -o8. of the readors, cas wioxly inoreased to 1,809.:
Tie o ntmspe ee, An tye pist,, w6-1d bo backod uj the organisation °Proe
prcanita for 3.iYo™. Tae sua needed te ro-vetadlion tila group woule be
ate.t thy ty “ees and sali AlMoa poees, Cf trat asount one a1 tes,
petue woul oe raise: Loaelly; .ras the olu soostoty od «ny new seuraca
te beule. Taat souka sean ow would be galled uren to cunport cur
Lrou. Lotie extent o one or ono aid a half ullllo: saeuve for a alataw

porivls of ow your,
be “Informa (coast t.1ty.o } i_asti-Gea:uniot sotivitios
eoee9to.”, i wwibening of op: ¥ souopager Gould not .o tha osten’
of our ,roup'o activities, [ quotas vor.atia fron tho ideals oxpreeced 4
in tha lo,all; ineurporated ergnaigatioa in- 19679

Ce a ae canoe

“no objoat of the aootdty vill bs oe emlottation of
nexepaors, radio and ether asens of propngsada doatined .
peinoipolly ot tho dofease of our roghaa of congtitust onal
descoreay end our soverdl oty against tho Harsis® foreco,
i Bovict coniimiam, and eay‘atner fora of totalitartanien. a
: In ite newspaper, putiicationa and othsy moans of progac 1
Genta tie cogiety vill tir toe patrieties of tho eistisenas : : :
end show to the publia ounselenso the traglo reality of the . i
Ser $o8 pogiss; 1% ail} figh? fo. olean goverment aad tho .
betterment of the eorzing glaasea ca the basis of the eorreds
{ @ -pliost oa of sesidl laws aad sonditiceaa, The Sesioty vil

we seme eee encom oon,

Ot ree ee ene ee een ee Ney anne Reiren ste te oe me eaten be

eee a anne neeme + cere mae

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utiliaoa for ite endo all bs yal actds of the expreasion of
ideas and principally, 1% aill editer reviews, bectd, paaghe
lotsa, bsaddil.s end poster. and vill sare a3} kinda of pub=
\loations, radio breadsacte end projsetion of Mins. Tho -
eoolety sill aleo ive aid te oll groupd or organisations
with siall-r aiss end il2 utilise all ths mesa of thought
“heooscars by tho Suard of Mrooters ia order to carry cut
ite ideate®.

Ge 9,500 (tea chen witsg)...cof 14 to otter vorthy civic, “ecotsl,
business or POL lousorganssations....". Haturally. our rou | would
do dolighte: ts ald atnere (nee anove).

d. %. 2.1L At bo ossicle to. edtein Mnanotal esatstanco Yeoad 1yt*
‘at. the present tims it fs lapossisle to eey dofinitely ‘og auch fine — .
otal adaistence could be obtained bere. But 4% ts ioterestia, ta moto
that the sud. firot acortdéd for the inege oration. of te old enocg istics

oy $690, O00, poeos. This sus waa alno.t douoled froa openitaseons doses

tions, ets., cone the sroup had" bOsamO a reality.

Tv hope the a-ove will oe euffis tent for tha proseat. Be sre pre=
sently waiting a dvtatlod ostia@ to of printing costes Cor "Por Chilo”
and atw3; fa, the probiens invulvedeea serious shortage ot. paper, for
Jieta.aa. But L ud.oetly feat that thie orgealsation ead ita ocfiotal -
orpen “Jor Chilo®,. plu a @adll nusper of younger poople o.0 ere inter-
ested in fighting Ganiualea, aovid ds the firs peginata, of «a great
work ia t.10 country, thioh si,ht sazo dey spread throuwhout Latin dooriaa,

ee Binoorely end cordially, .o

(FONE BRIRL)

ter alle sae

1 te Aen atte sa rane te ene Gaerne eeeietine wee!

_duna 17, 953. ,

' FOneBi he) - . ° , : uo :
Bear 3irs .

Pais fa to acknowledge with thane receipt of
your informative latter of April 27, 1953 which arrived
by steerer matl, We recret that an sarlier reply baa
riot: bedn pogsiblé, but. tna time elapsed has beon well
spans -in- giving your Latest report and- your propesdl: - “
of March 5,°1953, the eerious conglderation whieb. .
they dontrve, We aleht suggest that: your future correse .
vondence be sont: to ua by atrzail. . arn

. fhe “executive ‘beard of che Poundatten’? hes. studied”. |
“ your report ‘of April 29, 1953 and appreciated your: - te ee
 :earprehenstvo response te our reauges for further ine _

saith partt- carat a cansia deretion ef fliiane tal, eee
tance asa” yeu have Jinttcated ‘would be nesessary, —

Aa. abeva ‘Indieoted, your provosal of “arch 5,
oni resort of fveril 3, t ave met wltr tae oyavetretio
Intacsst sitvin tra ravavtattions of pertteular interest
are tha fad? cotton “ot! aban: - local svupest in the | fet
pagt, an avidenc ed by ths an 9209 pero intetlal -iscare
neretion svosertotiongs ‘plas an "aircat Agua) eeoant in
‘@.reequent- ‘Hane't Loe ‘for tho ("P.F.o.") orvanizetion,
Novevear, Wa Would bike. to kmow to whes oxtert the
1h? fTieures, which vou efted in gour letter of April
7, might serve as a realistic baaia ror a 1953
aetinate of. DUpPOPS wean mith be obtained pocally. - !

vf, in the light of information at hend and
any addi ttonsl int ammiation which you aagy furnieh on
the perscmnat, Prsovrcas, and needs of yooR grovp, ;
your -propessl should prove to conatithts the Troaible i
ond desirebdle: ‘activity ehieh it now appeara to co, we ~ se
will andosvor’ to lend ovr suoport te you in every ¢
way poosit les; :* ; . = :
“tha “Foundation Witl sot te in a” posttion tao ee
frame a definitive dnaver to your praposal until wo
ere in recelet of, md have peviaved, your promised
astimate of printing costs for CAP .6,° of

‘ 4 Vary truly yours,

(DTAABEASY

eran ae
Tae we ealeahes cae tf etna iterate Me games .

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~ HABEAS |

Pr; ae
. Phan you vory uxde fer pour loiter ef dens 16, 195), exploiaiag e \

that you are mani cone ¢sring the poseibality of oid for cur Gow.

wont to -epologica for the error which resulted ta my Lact
eaa-oni}, Of coures all Astera correspondence wili-ba

¢
- !
. b
to Srile's U \woraity vesadate ip ip iec fon Yalpareies ead Csanspetsa, . .
““Unine 4t te a graphic azaxple of tho hint of wore oar grow. ont. ae: oe Se af oo
: +1
\

for ths project vere ratesd by "Por Chile”. :

We are hoping to cond you sore complete Geteils ot the caries? poocibla bo
foment, : ot h sy
(depos ?). [oral

' Yn spite of the love) @unoaic aysten ca foo) thst vo can/en sach wapport |
Losally for amy auch ‘project of tho group, and will re-sffire posdible Gai teliss- coy

tion an our peat letter, . . a i
. . “4

|
{
|
| ° ere te no , qieation ‘that there doa ‘great deal of cork to he tone bore. 4
The peaprlst, for iaetanco, originested frog the studeats tawolved aid vas ast j
i prods sed with our aid, on {
| Hoping thet wa amy hear frea you acon ogaia. Pegarde, ead theske for 7 |
1 “ your interest. to
| _ . _ «.» Sry truly yours, Toren : :
I wy 38 (FUMmEBRIAL) i
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14-00000

Pe, ; . a
: Air 7 wt WSN =345

ne

mo “ Chief of Mission, Santiago
Chief, WD
KUGOWN Matters
L. FURIOSO-C
REFERENCES: (a) HCSA-4343 (b) SaGO-848; (c) DIR 16626; (a) DIR 17648

1. This is to confirm and amplify reference (a), that Headcuarters has
frepared the initial letter from DIHAZEAS to Martin J. COKENIAS. This
letter, which requests CCiZIAS to act as the "honorary" DTHAEEAS rep-
resentaviva in Chile, is teing sent air-mail to the CCnSiIAS residence in

Santiago.

2. As an attachment to this dispatch ve are rors rding the draft of a
suggested raply to he sent by Com IAS to DINASEAS, via air mail. COKXANIAS
need not use ow suggested letter verbetim, as long as he dces incorporate
in his reply the ideas contaired in our draft. ,

3. Upon receipt of the letter of acceptance from CCHEnIAS, DTHASEAS wild
send COr;2vIaS a letter of introduction to FUREVRIAL. DPtaluksS will also,
at the same time, alert Fl TAL to the anticinited contact, asking him
to put CCrERIAS in touch with sUNERIAI-1,

4. For securitv reisons ver are not enclosing comics of the inibial PTHAFEAS
letter to CUXHIAS, It is suggested that station make its own “ile copies
of the letters sent directly to Gu\sliAs. .

5. In his contacts vith FUNESAIAL and WURERRTAL -1, co 4S will naturally
not disclose a greater Imovledge. the BTHABEAS-FUNSSRIAL relationship to
date than woyld logically he available to him th rough his own corresrondence
with PTVAREAS. In order to facilitate understanding between CC: 5
.. the. FURICSO-C grour,:- however, the next letter from DTHAFFAS to CONE 1as
aca e, insaddition to the letter of introduction, copies of the
-DTEASEAS corresnendence to date, Nseccuarters recliszes that this
corres: onderce is already available to CCREIIAS, since copics were pouched
vith hCSW-274, but it is relieved that CONENIAS vill be in a Zirmer resition
Vis-a-vis FUNDONIAL if he car. produce his own copies of such corres:ondence, .

direct from [THA
6. Since DTVADEAS/

BEAS.

g, C, EIXG "DE, HCIPAN, JR. DAVID W, SXSER
CkH DCfTR IAB CHR LAE

Span
it we
SEURET


14,0000
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Attachment: . :
Draft of suggested reply of COKENIAS

SECRET

i HCSW~345
page 2

Since DTHANCAS has written to COn#’.IAS on the Lasis of a "previous
accuaintance™, it now becomes inperstive for U TAS to be briefed or
DTEAS AS and certain of its person-el, : Heaccuarters would therefore

like te know the extent of COXSN1AS' crasent knowledge of DTHA. EAS, in
order that ve may sucply him with whatever background information he may
need to be convincing in his role as an old friend of a DTHASEAS director.

Headcuarters wil] forvard comments requested in paregrarh 4 of ECSA-409
subsacuent to the actual introduction of COeE.145 into the FURIOSO-C

picture.

J, C, KING
CWH

to DTHAPEAS

31 August 1953

Distribution:
3 - Santiago
2 — WE/RR.T
1 - WE/‘ail Room
1 - RI

WHD/LVEbert/av

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Dear me

rss
.

ores

I havo -recelved end conzidersd your ind letter ef end a3
otacorcly Mottered that yoo chould bo willing to plese guat conliesnse fa
‘m8. 1 wuld te proed to cates ca oa “honorery” representative of the Pounde>

Rion, ad pending reesipt of the necessary Sarther setaile, I will be heppy
to accent, © :

You ware ent {rely correct in ssmmiig thot I heave saintained an cetive
inserest in the good wort of the Foundation. In fact, ny intercst, rether
than dininiehing sines I left. the U, 6, hes greatly inerugsed in vigw of
. Ry obsorvatinaa and experientys here in Chile. Thore is a creat need down ©
._ . sve for gust such estivities ao you have muntioned in your letter, aad I

would volcone an opsortunity aueh- as you have presented, vhercty I ean
on cor.tributa to the. Foundation's procrean of asaistance,

In. conclusion. pay 1 say thet I shall look foruard te mocting and wore
ding with FUSEHIAL end PUNIPXIAL-2 an soon ag you em feraish no with tho
laters of introduction to thees gentlewen. I area that tho took at hend a
is net ono to be moag.ret in terma of salary, end 1 thall consider the
satisfaction 1 amect to darive froa thie work as amle remmerst ion.

“Thanking you agai: for your eupreseion of confidence in ae, | es

‘Very truly yours,

N
‘ :
: : .
Sseitacemeeiaiecinatenmenensee aka eieiheemnemeeeaac tanec
+ * 7 - - ‘ .

ng

Ps ae ge

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14-00000

Rasp ryn or

- : 2° Secuy iy iotgs
October 6, 1953,

Dear FUNESRIALs

It is my privilere, by means of this letter, to introduce to you
my good friend, Mr. COKENLAS, who has recertly, and very graciously,
consented to act as the Foundation's personel representative in Chile,

I have taken the liberty of asking is. COKENIAS to serve in this
capacity primarily because tha statutes of a> Foundation require that ve
seek the services of a U.S. citizen to represent us in any foreign country ~
4n which ore or more Foundation grants nay be cperative, In addition, hovever,’~
I earnestly believe this arrangement will serve to strengthen the very promising
relationship alreedy established between us and to stimulate those activities
which are of mutual interest to us, I had net mentioned this stipulation in
our previous correspondence, but I do so row in view of the possible imminance
of a formal agreerent hetween Propaganda Pes Giile ond the Foundation, Our
receipt of your promised printing cost estimstes would pave the way for approval

and detailed planning of an actual grant of assistance,

It is my hope and expectation that if, CCKENIAS will call upon you in
the near future to present his respects ané curs, As our representative he is
authorized and prepared to discuss all ratters of mituai concern. Mr, COKR/LAS
has been instructed to extend to you, to Sr (to whom, I trust, you
will introduce Mr, COKENIAS) » and to your grocp as a whole, every possible courtesy
ané assistance, It is ry sincore desire thet this perscnel contact will prove
to be cf conmon benefit,

, Enclosed you will find a copy of sy letter of this date, to kr, COKENIAS,
i the same time, I am sending lr, COKENIAS e copy of this letter to you, as well
as copies of our previous correspondence, so that he may familiarize himself with

developrents to date,
Trusting that you and Sr. will receive hr, COKENIAS as our {

representative in the same spirit with which he has‘offered to serve, and hoping
that this arrangement will mark the beginning cf a worthwhile and enduring

association, I remain,

Veror ecrdially yours,

DIGASRAS

ecs COKENIAS


14-0000

Santiago, 31 de Octubre de 1953

DIE ABEAS

Tay apreciado senor Hy

He tenido el placer de conocer al Senor COKRENIAS, El me ha
_dicho que no es necesario quo mis cartas sean escritas en ingles, lo que
a facilitara nuestra correspordencia nves mis conocirientos de la lengua
to. . .Anglesa son tan rudinentarios que re vela precisado cada vez, .a buscar
‘un amigo americano, de buena volunted y corfianza, que me. tredujera las
cartias. que le‘he..estado enviando, - Achaques de salud hand contribuido a no
-Yesponder oportunamente, como nibiera sido.mi deseo, sus cartas.

ayer

Ya estamos en contacto con el Senor yY esperamos
llegar muy luego a un entendiri ento vara proseguir con nuestro proyecto
: de reeditar el periodico, "Por Chile®,

Heres

El senur COKENIAS le enviara my pronto un resumen de lo que
estanos acordando,

Se despide my afectuosanente » 5.58.

’

FUNEERIAL

: .
(Above letter by FUNEERIAL acinowledges that he has been introduced to
2 COKENIAS and that the latter will send to DTILABEAS shortly a resume of
: the PPC plans.) nr


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” Project Title TTOSC C (PCAC VERdundnont No.

Doveloned by ;

ohe
WOOT ag ASU

moe tg pat
Bele wre Tah

Profock Ougling Gisaroneg dhgot
: Project Ko.

7 ‘
Liew grt) APS I w phen 1983
screen bor DO NE? AINE ONES rT

Lng TH
Organiaition

Case Officer
’ A » sefefis 6 a sy
He fc ision Cl,

‘ “
— ~ y

S+E-CoR-E-P

14-0000

SekGelehek
Snourity Infermaticn

fy
(PSCROVEL) ;
Projoot Title FURICGO O Amendment No. 2._ Project No, ee

Tre following Ling and Staff Officers of she Western Hemiaphero Divisicn have
aligned ard cconeurr with thig projeat.

Ccneurreds Psychological Warfare Officer no Nad (), Comsg. i935 22

Late
Economic Warfare Officer WHD
Date
S<botege Warfare Officer WHD.
Date
Countorsabota eo Officer WAD
: : Date
. - c
Paramilitary Officer WiD _
: Date
Later Officer "HD,
. Date
Jeginties Offfeor WHD
Date

Budget Officer 7&0 WHD

Plans Officer P&O wo

Projeat Coordinator Wik

Chief, P&O THD:

Cernditiona of Approval,

we perso

meme te

A ANE RE

anon Re ERRC RRR RRs

a eet eR RN tm

ot
SoEeCeRebeT

PROJECT CUTLING
Projects FURTOSO-G (PFCROVEL) doendent Ne.2,
Type: Operational

X, aAuTRQRIZATION

A, Basic Progran Authorization

1, Basic project PBGROVSL was approved on 12 February __
1952 for the establishment of a mechanism capable of conducting
KUGOWN activities aimed at the accomplishment of WHD nissions
(a) and (b) in Chile; as set ovt in Section It (paragraph 2 b)
_ of Annex B to the WHD/KUGCWN Strategic Plan dated 1 Novenber
1951, This task was assigned priority one in Phase I (1 Jan, -
30 June 1952) in the aforementioned plan, Funds in the anount
of $4,700,00 were allotted to this Project, to provide salary
for contract agent Poul D, LANGSVIN (FUIMINATOR-1) for the
remainder of FY 52, to cover the cost of bringing him to PBRRIMS
for a period of covert trainins, provide his per diem allowance
while here, and to transport hin back to Santiago, Chile,
following complotion of training, 2000 7

2, Amendment No,1 to besic project PRGROVEL was approved
on 14 July 1952 for the amount of §6,000 (later reduced to $%,000)
to be made available as 2 loan, at 4% interest, to contract agent
Paul D. LANGEVIN; the loan to be secured by a lien on rachinery
and equipment velued at approxizately $10,000; interest and
principal to be auortized at the rate of $500-per month, the full
anount of the agont!s salary, Acthorization for PBGROVEL Arerd-
nent No,1 was the same as that for the basic project PBGROVEL,

3e The 1954 WH Operational Program, approved by Chief,
KUBARK on 10 August 1953, authorized a maximum expenditure of
$10,000 for this project during FY 1954,

Yee serpemges resem

- Ii,

Coney
0 MMT
wecurny infymattsa

REFERENCES

A,
B
c.
D.

Sie as for basic Project PECROVEL
Budgetary data for this azendment (Annex A)
DTHABEAS —-FUNEERIAL correspondence (Annex B)

HCS-W-345, with attachment (Annex C)

ene ts pacge
Souls

Secure infernal

eOCUey PM EREPALEL-SSLETE

14-0000

A,

‘ B.

TIT, TE PROPCSAL

mie eet
ae
Secunis inter

~6-

Statement of the

“i, In ossie >rojért PROROVEL, it was vroposed to
undertake the development in Guile of a group or-committes |
composed of C:liean nationals which would engage overtly ant
actively in enti-BOGYPSY erforts anc would function as a WD
rechanisn for the accorplishment of WHD missions (a) and (b) °
aforenentioneé, As the first step in Luplerenting the develop-

-nent of the co:mittce, it was proposed to engage the services

ef a PBPRIMS rational in Chile as a contract agent whose task
was to select, and exercise subtle guidance over a qualified
Chilean, the lattér to act as the organizer of the committee,
It was further stated thet at such tine as development of the
committee warrants, the necessary steps would be taken to
place the committee in the preper relationship with the
DTHABEAS foundation for purposes of cover and support, The
provisions of the foregoing are now revised in accordance wit
the proposel of this anendron’ as set out below. The overall
objective of the basic project remains unaltered, °

2. It is proposed, in this Anendment No.2 to Basic
Project PRGRCTEL, that WHD furnish technical and financial
support, not te exceed $10,000 during Fiscal Yoar 1954, to a
indigenous grevn of Chileans for the purpose of aiding the
group in its overt anti-BGGYPSY and anti-BIGHT KUCGOWN—type
activities, WD suppert will be specifically designed to assist
in the re-activation of the group elong its original lines and
to foster by support periodically advanced, the revival of the
group's official organ, a weekly news nmagasine. It is antici~
pated that the indigenous group will evontusally also serva as
a mechanism Tor the channeling of WHD support te other worthy
groups with sizilar aims, (Seo Annex C),

Background

1. In 1947, a greup of influential Chilean business and
intellectual leaders formed a legally chartered organization
dedicated to an overt and active anti~BGGYPSY and anti-~BIGHT
program throug: use of all types of KUGOWN media, The group
published. an exti-BGGYPSY weekly news magazine designed for
the working class audience, Tho activities of this group,
including publication of its official organ, were later

' saspended as a rasult of financial difficulties, public solici-=

tation and subscriptions being, at the tine, the only source of
funds, ©

2, Threugh the encovragezent and subtle direction by


14-0000

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it rae
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Ser cor

Mission Santiago, working through contract agent Paul D,
LANGEVIN, FUNESRIAL, an anmuitting Chilean with excellent
contacts in business ang intollectual circles, has suecceded
in vo-eetivating the fornar organization, and has recontly
appreached DIHAHGAS with a request for support for the group's
activitius, .

Current Status

1, The proviaions of basic project PDGROVEL and of-
Anondment No.l ‘havo been fulfilled. Contract agent Paul D,

* LANGEVIN has accomplished his miysion, that -of selecting ani

subtly guiding a Chilean citisen as the indigenous organizer

of the cormittee, The loan to LANGEVDI, provided under the
terms of Anendment Ho,1, has been paid in full, and the services
of the contract agent, for this  Broject, were terminated as of
31 August 1953, ;

2, Tho present cormittee, composed of influential Chilean
citizens, has been in touch with tho DTNAREAS foundation since
Mech, 1953, The initial contact and subsequont correspondence
with DTHABEAS have been handled by FUNEARIAL, who, while not
a menber of the original (1947) group, is an outetandirg
caricaturist and satiriat with abundant experience in
journalism and publishing, and who has taken the initiative
in re-forming the once-active connlttee,

3,. DTHABEAS is currently awaiting receipt, fron FUNESRIAL,
of a detailed estimate of financial support needed, to include
printing costs of the group's woekly news magazine. The
publication itself will be published and edited by FUNESRIAL-l,
a Gynanic anti-BCGYPSY individual who also published the
official organ of the 1947 orgenization, Upon receipt of the
aboverentioned estimatés, and pending thoir review and approval.
by WHD, DTHABEAS should be prepared to extend technical and
financial support up to the amount of $10,000 per annum, It
is understvod that such WHD support, channeled through DTMAREAS
will supplement at least an equal amount which is to be raised
locally by the FUNEDRIAL comnittee,

Le ‘Contract agent Paul D, LANGEVIN has been replaced,
as the cut-out and'principal.agent for WHD, by Staff Agent
Martin J, COKENDTAS, The latter is presently being introduced
into the operation as the Chilean representative of the
DTHABEAS foundation; this 1s being done by means of corres—
pondence between DTHASEAS, FNEERIAL, and Martin J, CORENIAS,
Once WHD ‘support to the PUNEGRIAL group is actually extenied
by DIMAREAS, COKENIAS, ‘threugh the exercise of subtle guidance
made possible by his capacity as a DTHABEAS representative,


ra

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tay

ad

"Showy Intocmaliget

Wil? sacit at least Indirect control over the activities
of the grevp. .

Adventages to be derived by KUGOAY

1. Sy supporting the activities af the FUNESRIAL
orgenizaticn, WH) will obtein the services of a secure ;
mechanisn wivitting of ODYOKE interest, capable of conducting

extonsive KRUGQWN activities on an overt and indigenous basis.

2, In addition to execution of its own KUGONN type
progrem, the FUNGBRIAL group will serve ag the focal point for
finding and direction af other KUGOWN activities carried on by
other indigenous groups having silnilar aims, By extension of
support to ether such groups, the FUMEBRIAL orgmisation could
thus becom the nucleus of a secure KUGOWN network, requiring
no direct contact by .WHD/KUGOWN personnel under QDACID cover,

3. Since this operation would be funded by WHD headp
quarters, through the WHD mechanism DTHAZEAS, and since control
will be exercised by DIHAREAS through its Staff Agent represen-
tative in Gills, Mission Santiago will be relieved of all but e
monitoring ani reporting responsibility, This is in accordance .
with the ti plan of removing direct contrel of, and attribution
for, KUGOWN cperations from the official station.

Risks Involved

Risks involved in establishing the KUGOWN channols
envisaged in this project should be minimal, The indigenous
individusls concerned have been recruited on an unwitting
basis and will be handled by Martin J. CCKENIAS cirectly, The

“FUNEERIAL group, as an existing legal entity, has good natural

cover ‘and can accept direct attribution for its KUGOQUN acti~
vities, Wo Station personnel will be involved ani tho possibi-
lity of ‘QDYCES interest being disclosed wil] be fiuther mini-
mized by securely funding tho group and backstopping both
Martin J, CCEENIAS and the croup's activities by DTHABEAS,
FUNESRIAL' vill be unwitting of the original source of his

funds and of COYOKE interest.

Pay Untarge gt ya

oy

14-0000

a)

Iv,

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Fi PECUSIDATION

That the funds currently approved for this project under
the WH Cporational Plan Sor FY 1954 in the azount of $10,000
be authorized for the implementation of the proposal outlined in
this acendrent., This support is not to exceed $8,000 during the
rerainder of FY 1954, Funds used in furthering the revised plans
fcr this project will be provided pericdically to the DTHASGAS
funding mechanism after receipt of statomonts from FUNEBRIAL as
to the proposed use of the monies,

a.

14-0000

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Sseuriis is coadiod
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¥. CPSRATICNAL OUPLINE

ay

Aros of Operation

1. Geographic erea
ea) Chile

2. Specific target groups
a) Business and intellectual circles

b) Working class reader audience
Qverational Contre)

1, Control exercised by Ueadquarterg

WHD/KUGCGHN will exercise operational control through
DTABEAS which will disburse finds to the FUNEGRIAL group
in accordance with specific WED instructions, Control
will be effected through the ellotrent of funds on the
becis of budgeted need, through DIMASEAS, to the FUNEBRTAL
froup upon cvidence of satisfactory performance of the
missions assigned to this organization,

2, Sontrol exercised by tne Meld

Chief of Mission, Santiago, will exercise indirect
control through Staff Agent Martin J, COKENIAS, By ncans
of indepencent checking and reporting procedures, Mesicn
Santiago will Lkoep headquarters informed of the FUNEBRIAL
group's activities, Should the group fail to provide
gatisfactory parformance, Mission Gantiago will advisa
headquerters to withdraw financial and technical assis~
tence,

Duretion of the Project

It is anticipated that this project, if approved for
FY 1954, will be continued in the future by veans of a
re-ellotment of funds obtained through the yearly Sperationay
Progrea=s.

y

Possibility of Overlanving Jurisdiction

It is anticipated that FUE SRIAL may eventually be used
to channel support to other groups in Ghile, either existing


14-0000

Fe

eimhated, whieh groups may .abt whimin the proving ov
D/UCOM pro, “eels in Chile.

Personne). Tequired

“mw,

1, FOMESAIAL and FULERUAL-1, voth unwitting Chilean officials
of PUREESIAL orpenization, are immediately available
as Princinal Agent anc sub-agent, respectively.

2. Martin J, COKENIAS, a WID Staff Agent, will be tho field
C.ce Officer fer this Project,

Corrain cation Plan

1. e present direct corzespondence betwoen DTIASEAS and
FOAL will be supplemented by correspondence between
DTHARBEAS and Martin J, COKENIAS,

2. Existing facilities will suffice for commaications between
Hea€quarters and Missien Santiago and botween idssion and
Martin J, COKEITLAS.

1. Supnort to be furnished oy Hoolquarte

Support furnished by heacytarters will consist
prizarily of overstionel, propaganda, anc technical advice,
as well as the vrovisicn of funds,

2. Sumort to be Curmished in the Hield

ldscion Suntiage will observe covertly the activities
of FUNEPRIAL's groun to assess the effectiveness of such of
their activitics as are related to this nroject,

3. Funcicg

a. At the present time the srecific financiel requirc-
ments of the FUNEERIAL corcittee eannot be given, nor can
any Pirt schedule of disburserents to the committee be set
forth inthis anendrent since these requirements will be
net on a day-to-day end month-to-nonth basis depending on
the neces of the committee,

b. Disbursements from funds authorised under this
wnencient will be controlled as follows, Pcrialically, cvery
feu rentis, the FUNETRIAL committee will subuit a budget to
DTHABZAS for the furs it requires for the succeeding quarter.

1 egrs anpa anne Seer RETRY Ue SEESTTEROAE amen errr

a re
~ 7 dh!
rae

Uy da

me Uron approval of | he funde

° will be placcd to tio Martin J,
: COKSHTAS, who willl “be © gy od@ist at in
\ accowianee with Congicential Inuxis reculations, EDTAS
will disburse ane fonds in the sullest anemis possible,

consistent with reintaining the onerating efficiency of the
project, ie shall net, moreover, make acciticnal disburse-
nonts until he has received tengihlic evicence of expenditure
(recedpts) for lprévious dishirserents, Ordinary digburse-
4 santa shevld not excoed $1,030.00 and chould be covered by
0 reeelpts within, thirty days. -Where the Staff Agent is
; certain trat receipts cannot be obtained for lerre cisburse-
nerts and where the expencituros. cannot bo authenticated with
; certainty hy the Staff Avent, an acendrent to the project
: shoulda be rrepared and a proposed acrinistrative plan should
: bo forwerded to Neadquartcrs tor approval, Staff Apent
‘artin J, COMENIAS shall take all reasonable nrecautions to
: insure that he maintains corplete control of the financial
mhases of this operation at all tines and that al] disburse~
nents adhere to the Ccnfidential Funds Regulations and the
objectives autherized in this project anc its enendents.

H, Renerts Procedures

Tn cranting finanelal aid to FUISSRIAL's croun, DTHARBAS
Will request periodic reports of activities and experditures,

hese reports will be covertly checked by lassion Santiago,

a2

.

I. Ccortination

a No coordination will be required beyond WHD.
J. Cover

as a complotcly cvert and legitimate local organization,
with an avowed anti-DGGYPSY progran, the FUNGERIAL grou has
neteral cover, WID support will be covered by channeling funds
through the secure DTHABEAS mechanism, Jlartin J, COKENIAS is a
Staff Agent uncer unofficial cover in addition to which his
relaticnship with the FUNEDRIAL group will be cerried out in
his eapacity es the lecal representative of DTILAREAS,

K, Security

All inéigenoug personnel involved in this project are
unwitting of CDYCKE intorest, Funding, control, and guidance
of the SUNEBRIAL yroup will be handled in such a wey that CDYOKE

. interest will not ke cisclosed to indigenous or unauthorized
merrcons, Attribution for the group's activities can and will
be accented by the croup, ‘The original source cf fins wild not
be known by the preun.

hy,

14-0000

fry

SECRET

SECURITY FRFOUMAT ION

“PROJECT FINANCIAL DATA pieoretces a

SHAY NOT EXCEED SEGRET CLASSIFICATION __ p Docetbo 19S B_HRU IO suNE 195 A

RESPONSIBLE STAFF OR DIVISION". 2 gpcase Cerise?
- Wi/RRT . Jot: VW. Isevinrar

A, PERSONNEL REQUIREMENTS

indicate mumbor and type of persosnel cesuired and estimated total comsensatica far.salary, allosances, travel and
Inctudse overyone paid from project.

related employee benefits,

ESTIMATED CCMPEKSATION
ALL OTMER

RKUMBER

Us Se PERSONNEL | FOREGGN NATICVAL

BASE Sauare

STAFF EMPLOYEES
STAFF AGENTS
CAREER AGENTS
CONTRACT AGENTS

CONTRACT CONSULTANTS
fFieup acenrs
MVLITARY

ALL_-OTHER
. S720 53,700
8, SUPPLIES, MATERIEL AND EQUIPMENT
Tadteate amdunt requirad in applicadle spaces, Attach completa suprorting Fist for each. — i.
COMNO CRENTCAL QUARTERMASTER SUPPLIES jem SurPuigS SS
$ $ $ 8 ary
MEDICAL DRONANCE SPECIAL DEVICES OTHER ECUIPMENT
s s s |
TOTAL 8. B09
C, OTHER OPERATIONAL EXPEASES
indicate volume ana nature of oxpensas such as (1) maingaince of two operstional houces abroad (2) spot purchase
of Information, ate. -
Offices, rental and utilitics 31,200
Publication equipzent and stpplics (locally purchased) 2,000 ° :
Local reinbursenont for repair, printing, and siciler sarvices oo
. 24,100

TOTAL C. :
O. SUBSICY OR PROPRIETARY PAYMENTS

if funds are to bo turned over to individuals of groups in iarge burp suts to be expendad Dy the individuals or

groups st their discretion to accomplish sn agreed-upon objective, explain the tyce of financial accounts, factual
verification ar statements, if any, other than a receipt for the famp sum, ahich will da obtained.

TOTAL FUXO REQUIREMENTS (A + 84 C + 0) $a a0

FORM MO,
Jue 1952 599725 SECRET w


14-90000

poerens

4
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”

SECRET
SECURITY INFOSMATICN

E, FUNOING REQUIREMERTS

AOMIMATE DATES AND AMGLNTS GF MONEY REQUIRED

Decexber 1953 gx fare; 1! Bas Ging nonth through Juno

January. 1954 1954 91,00 .

retrvary 1954

FORM REGUY RED

(FX ] uv. 5. oourars (E7] Foreign (specify) .~

CJ necoriasre tmstrusesrs (SPECIFY)
SPECTAL SECURITY REQUIREMESTS OR METHODS OF TRANSMISSION

None Mom

F. SPECIAL REQUIREMENTS
(Within security IImttatlons, ist any other facts or circumstances which will enable Special Support Staff to lend
adequate logistical support to this project.

Indicate apecificationally the "RUSH" of "TINE? factors Involved)

Expoditious anvroval is requested sa that money can be expended as soon, as the
FUNEBRIAL group sutmits to DTWAREAS ite concrete cost estimates for sett ving up
offices and equipment,

; SECRET

14-0000

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14-00000

MEHOMARDUM FOR: CHIEY, SPECIAL SECURITY DIVISTOR
1 “wee  ‘SHROURH : FI/stc/sr3
SUBIC? t Pequest for BadgoeeDavid A: on

1, I: is requested that 9 Limtted badge te iesued to

: * He, Dovid A. Phillipa, covert Agent for PP/CT, working in the
' Bevepacar and lecture Piald. The limited tadze should include
access to the Admin. Building, 2210 "ge" Stree:, I, J, Ky and
L Buildings.

2, My. Palilipn' esade to here accase to theea Yuildines
tecanse of hla frequent comiaci with various officials to
; . Deltar equip hia for his future soeignwat, it in anticipated
: imat he will be ssaaigned to this Agency fer one year,

3. For forther istermstion, contact WV. F. Esvley, PP/
Security Officer, roca 1412 K Illding, extension 2606.

(SIGNED) COLWELL 4. axaAS

FOR
JO BE, BAR
Acting Chief
PA yl Paychological aud Paremilitary Opsrationa S.aff
o/amuanf lon dey sme, 26 Avgust 1954
Distributions
Prete /ae = Orig. 21
FI/SEC/SPB - 1
PP/Acmin = 2 nQaray
Pr/nt/an 22 eet

ho

wed


14-00000

SECRET

fon Fit fed Tat
~ , DOCUMENT TRANSFER AND CROSS REFERENCE

DCCuMERT LOENTIF CATION

rae a /8| SaBl [

\ 7 j 3. DISPAToN OR SOURCE HOC. svmagL NO-
PROJECT * + eect eee
1 TT. en _ aa
FURIOSO C Pe SouNce CAvPTONYM 9, OATEC OF INKO. [9- EVALUATION
meee none

CATE

3. anaes? @. DATE PROCESSLO 70. DISSEMINATED IN te
Cc. McNew 28 Nov-61 peated
‘ COCUMENT DISPOSITION

T2- CROSS REFERRED TO THdS POLE . 13. “YRANSFERRED TO
Xx . Ri FILE NO.

REATINENT UNFOQVAT ION

Project portion has been removed and sent to RI/AR.
For review of file, contact RI/AR x-2471 using RI
° file number indicated above.

x-ref 201-88764 FULMINATOR-1

SECRET (7-49)

bey ES7 vse recvicus roerious.


14-0000

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THIS DOCUMENT IS CHARGED TO YOU.

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17-13)

